If at first you don’t understand why those two words made your rectum tighten up, allow us to explain.
“Quantitative easing” is when governments create money out of thin air, which is typically what happens when they realize there are no more interest rates left to cut.
Here in America, we’ve not only reached that point – the truth is we’ve been printing money like mad ever since the financial crisis started in full force three months ago.
And it’s about to get worse.
Over $1 trillion in new money has been printed since September, yet in spite of all that cheap green … and in spite of Bush’s bailout billions … and in spite of the Fed’s soon-to-be nonexistent interest rates, nothing has managed to right America’s fiscal ship.
So what now?
Well, Fed Chair Ben Bernanke has always been a fan of quantitative easing, and President-elect Barack Obama is every bit the “bailout boondoggler” Dubya was, so we’re guessing that America’s fundamentally flawed reactionary economic tactics will remain unchanged.
By Et tu, SC? December 15, 2008 at 10:10 am
Hey…we do it to. Like when our Republican Treasurer raised the assumption on how much money he would make on the state retirement fund. That created a lot of money out of thin air, which he promptly gave to retirees. And, thanks to our legislature, we get to give the retirees more money again this year…and next…and next…and next. Even if the fund continues its current nose dive.
How’s that decision looking now?
By Fred December 15, 2008 at 2:58 pm
Oh, yeah….conservate Comptroller Richard Eckstom voted with Treasurer Chellis on the 8%. And oh yeah, Sanford appointee to Treasurer, Ken Wingate, voted for the 8% too.
Just the facts, ma’am.
By Right Said Fred December 15, 2008 at 5:06 pm
Eckstrom and Wingate both voted for it? Sanford must have had a coronary. Is that really accurate?